• Adelong Gold is the latest junior goldie to diversify its way into Brazil, while OZM continues its rise
  • It’s a slowish news day for ASX resources stocks on the whole, while the Materials sector slips half a percentage point

Here are the biggest small cap resources winners in early trade, Friday September 22.


Adelong Gold (ASX:ADG)

This small explorer is best known for its namesake gold project in the Riverina district of NSW, but today, it’s moving up double digits on some head-turning lithium-based news.

It’s not every day you see a junior goldie diversifying into lithium. It’s just every second day, it seems.

Budge over a fraction, OzAurum and Alderan, Adelong has announced today it’s entered into a binding agreement to acquire a highly prospective lithium exploration tenement package in the prolific ‘Lithium Valley’ of Minas Gerais, Brazil.

That package represents a 100% interest in three applications for lithium exploration permits.

The region is renowned as one of the world’s largest regions for hard-rock lithium spodumene deposits and the company’s tenement area hosts useful infrastructure including well-developed highways, hydroelectric power from the grid, water availability and proximity to commercial ports.

Exploration activities are planned at the tenement in the coming months.

Adelong Gold MD Peter Mitchell said: “This represents the company’s first foray into Brazil and is part of our strategy to diversify our project base and to be an active participant in the massive battery metals space.”

Footnote: As Reubs mentions in the latest Eye on Lithium column – along with Adelong, OzAurum and Alderan, Latin Resources Limited (ASX:LRS), Solis Minerals (ASX:SLM), Gold Mountain (ASX:GMN), Oceana Lithium (ASX:OCN) and Si6 Metals (ASX:SI6) are the other ASX-listed explorers hunting ‘white gold’ (lithium) in Brazil.


OzAurum Resources (ASX:OZM)

The good form of this gold-hunting junior continues.

And that’s despite reporting a net loss of $2,923,933 for the year ended 30 June 2023 (30 June 2022: $4,893,835) – as noted in the company’s annual report to shareholders, released late yesterday, sneaking in just before the ASX closing bell.

OzAurum has had a fine week and a bit, though. In fact, that’s an understatement – OZM is up 415% over the past seven days at the time of writing.

Last Friday it broke news of its diversification into lithium with the acquisition of the Linopolis Jaime project in the State of Minas Gerais, Brazil, where it appears to be onto some particularly juicy-looking spodumene.

And just a couple of days ago, it kept the good vibes rolling, raising $2.4 million in a share placement to pro and sophisticated investors through the issue of 31,750,000 shares in OZM at a price of $0.075 per share.

A good deal of those funds will be funnelled into its Brazilian lithium operations, including a geological mapping and geochemistry activities, diamond drilling and assessment of further potential lithium project acquisitions in Brazil.

Funding will also be funnelled into the company’s scoping study at the Mulgabbie North gold project in WA.

OZM share price


5E Advanced Materials (ASX:5EA)

This boron and lithium explorer is up on the news it’s been granted US Environmental Protection Agency (EPA) approval to conduct step-rate testing under its existing permit.

What’s all that about? Step-rate testing is used to accurately measure the fracture pressure of geological formations. In this instance, it will establish the porosity of the ore body and form a base-line parameter at the company’s Fort Cady Borate project in California.

That’s a project which hosts a multi-generational borate resource where boric acid, borate specialty materials, gypsum, and potassium sulphate (SOP) will be produced.

The company plans to conduct a process to inject water into its wellfield, initiating the testing process and, says 5EA, this represents a meaningful step towards conducting full boric acid and lithium carbonate extraction operations. ‘

The step-rate testing will allow 5E to “advance through the final stages of preparing the wellfield and its ore body before commencing commercial operations, bringing 5E closer to being the first commercial scale Boric Acid production project in decades,” said Chris Knight, VP of Operations at 5E Advanced Materials.

5EA share price


White Cliff Minerals (ASX:WCN)

This WA-based diverse metals (precious, base, lithium) explorer is up on the news it’s issued 5,000,000 options to “a consultant”, exercisable at $0.012 expiring 30 June 2026.

There’s not much else to go on there, other than the fact the company has been moving itself further into a position of capital strength in order to help it strategically assess and re-position its portfolio.

This comes after the company announced on September 14 that it made an agreement with Gold Geological Consulting to sell 100% interest in the Abraxis lithium project in the Pilbara for a total of $200k.

“With a current cash position of approximately $1.95m, as well as liquid securities worth approximately $3.56m, the company is well capitalised,” it noted at the time.

“The company has recently completed an assessment of numerous projects sourced via our international network and we are working to position ourselves in front of what we believe is the upcoming wave in metals associated with power generation and power distribution,” said executive chairman Roderick McIllree recently.

WCN share price